Italy 10-year bond yield lowest since late-October

Italy’s 10-year BTP yield dropped to 3.53%, its lowest level since late October, reflecting a broader decline in European yields amid growing risk aversion.

Italy 10-year bond yield lowest since late-October

Escalating concerns over the Ukraine-Russia conflict intensified after President Vladimir Putin revised Russia’s nuclear doctrine to expand the conditions under which atomic weapons could be deployed. Additionally, fears are mounting over the potential effects of Donald Trump’s policies and political appointments on Europe, particularly regarding tariffs.

Economic risks from US policies

ECB Vice President Luis de Guindos and Bundesbank President Joachim Nagel highlighted the economic risks posed by US trade tariffs. The ECB is expected to reduce its deposit rate by another 25 basis points in December, with projections suggesting it could fall to around 1.9% by July.